4. Common Business Challenges…
Sourcing mission and goals are not
aligned to the strategic objectives of the
department/company
Failure to leverage volume (economies of
scale) - with fewer suppliers
Increasing cost pressure and competitive
threats
Difficulty collecting and analyzing key
data, compounded by poor quality of data
Lack of automated, integrated process;
failure to utilize technological solutions
Strained relationships and lack of trust
with suppliers
Lack of innovation and new-value
creation from supply base
Competitive outsourcing solutions vs.
internal operations
Reduce overall category spend and total
landed cost at raw material and
component level
Internal vendor management o effectively
manage supplier capabilities
Leverage technology and streamline
routine procurement processes
Influence key business strategies early in
the decision process
Fact-based decisions supported by
rigorous data analysis and information
accessibility
Define, monitor and measure key supplier
performance metrics
Contingency planning; proactive risk
prevention and mitigation strategies ready
to be deployed when necessary
Benefits & Solutions…
Challenges with Solutions
5. • Understand Business Strategy,
Objectives and Situation
• Conduct robust data and process
gathering and analysis
• Accurately describe and depict
the current state
DISCOVER DIAGNOSE
• Identify performance or behavior
indicators that are symptoms of
a problem
• Build Baseline by defining problems
and key drivers
• Evaluate advantages and
disadvantages of alternatives
DELIVER DEVELOP
• Gameplan - Define project scope,
objectives, approach, time line and
deliverables
• Create solution alternatives to
address key issues; align solution to
the business strategy
• Customize solution to specific
business needs and culture
• Propose Actionable recommendations
• Present plan or road map to implement
plan and prioritize initiative
• Gain key stakeholder support
• Communicate, implement and execute
transition plan
Strategy – D4
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